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Peter Davidson

Autumn Statement: What Jeremy Hunt is expected to announce and how it could impact Scots

Jeremy Hunt will deliver the Autumn Statement later today, where he is expected to raise taxes and cut public spending in order to balance the books. 

The Chancellor of the Exchequer has warned that everyone will have to pay "a bit more tax" and that "sacrifices" will have to be made following the disastrous mini-budget in September.

Ahead of his statement Hunt declared he will be playing Scrooge, as he sets out his vision to restore financial "stability", with a focus on delivering "certainty" to families and businesses in the wake of the market turmoil sparked by his predecessor's £45billion tax-cutting bonanza.

Liz Truss and Kwasi Kwarteng's mini-budget may have cost the country as much as £30billion, according to the Resolution Foundation, potentially doubling the task at hand for the Chancellor, as he seeks up to £60billion in savings and extra revenue.

So, here are a number of policies that could impact you if you live in Scotland:

Taxes

It's expected the national insurance (NI) thresholds are set to be frozen for another three years from 2025 to 2028. As wages rise it means more people will be dragged into higher rates of NI.

VAT and inheritance tax thresholds could be frozen for another three years by the Chancellor. While the capital gains tax threshold could be halved from £12,300 to just over £6,000, according to reports.

Chancellor of the Exchequer Jeremy Hunt will set out the Autumn Statement today (PA)

On Sunday, Laura Kuenssberg asked Hunt that freezing thresholds could be a "sneaky" move. He replied: "The principle of my approach is that I'm not going to be hiding anything I do.

"I'm a Conservative Chancellor and I think I've been completely explicit that taxes are going to go up, and that's a very difficult thing for me to do because I came into politics to do the exact opposite. So, I will be honest, I will be fair and it will be a balanced approach that recognises that the economy is struggling at the moment, businesses are struggling, families are struggling."

Benefits

Politicians from all sides have called on the government to raise benefits and pensions in line with inflation (10.1 per cent) so the poorest in society are not hit hard by the current cost of living crisis. State pensions and benefits increased by 3.1 per cent this year, after the pensions triple lock - which guarantees an increase in line with average earnings, inflation or 2.5 per cent, whichever is higher - was temporarily suspended.

Rishi Sunak said pensioners were "at the forefront" of his mind, as he hinted at reinstating the triple lock when he spoke to reporters accompanying him on his trip to the G20 in Bali.

Wages

The national living wage - the minimum wage for over-23s - could rise from £9.50 an hour to about £10.40 an hour next year, it has been reported. At present the minimum wage is £9.50 for over-23s, £9.18 for 21 and 22 year olds, £6.83 for 18 to 20 year olds and £4.81 for under 18s and apprentices.

Windfall tax

Former Prime Minister Liz Truss opposed a new windfall tax on excess oil and gas profits despite calls from opposition parties to help families across the country. BP reported global profits of over £7billion in a quarter, Rishi Sunak is thought to be pursuing a new levy to raise over £40billion over five years.

Options include extending the temporary 25 per cent levy to 2027/28, raising it to 30 per cent or 35 per cent, extending it to electricity suppliers - and Sunak is planning to do all three at once, reports suggest.

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